“If you would be wealthy, think of saving as well as of getting. The Indies have not made Spain rich, because her outgoes are greater than her incomes.”…”Away, then, with your expesive follies, and you will not have then so much reason to complain of hard times…” Benjamin Franklin in Poor Richard’s Almanac
It’s worth noting that Dr. Franklin does not say “think of investing” when he advises you about building wealth. Only saving is “saving”. Investing is a form of “getting.” Today the merchants of misinformation and their minions, the snake oil sales reps of Wall Street, manipulate the thinking of Americans with self serving shibboleths. They tell us over and over that the market always recovers; they qoute the “average” rates of return as if they were guarantees; they insist that if you stay in the market long enough you will always come out ahead; they discount the value of any financial vehicle that does not fit their greed based model of acquiring “assets under management” – a subtle way of saying they make money, whether you do or not, when you surrender your wealth to them.
Spain did not achieve the same degree of wealth as America because Spain consistently sent its money on risk based ventures. It failed to capture its gains by saving. It focused on “getting” and on “expensive follies” – the appearance of wealth. When a potential gain – a maybe – or a superficial possession puts what you have in hand - ready money – at risk it’s easy to lose your grip on what you have. The elite of Spain – and the elite of Europe for that matter – thought themselves wealthy, lived in luxury, and saw Americans as bumbling bumpkins. Americans lived much more conservatively and acted more prudently in business and personal economics. Europe focused on “getting” while America focused on “saving.”
Many Americans of today are behaving like the Europeans of America’s colonial period. They are facing financial hardship or even ruin because they are focused on “getting” instead of “saving.” The sub-prime debacle is the result of people “getting” homes and mortgages without first saving the down payment and saving enough ready cash to deal with the inevitable ups and downs of daily living. The failure of over half of American’s to retire comfortably is further proof. They want the appearance of wealth without first saving to develop true wealth. They want the outcome without the process.
“If you focus only on the top of the mountain, the path to the top will elude you.” Dr Agon Fly
Wealth is relative. So, too, is the appearance of wealth. Two neighbors have similar incomes and live in similar houses. One is fully paid for. The other is mortgaged to the hilt. One drives a ten year old Buick that is paid for. His neighbor drives a brand new Mercedes that costs him thousands of dollars each year in payments, insurance, fuel and maintainence. One sends his children to the public schools and tutors them according to their needs. The other spends tens of thousands of dollars each year to send his children to an exclusive private school. One belongs to an exclusive country club. The other plays golf at the public courses. They both work for a company that is about to go the way of ENRON and MCI. One is wealthy – no matter what. The other will soon be greeting you at WalMart.
One follows the American way – tried, tested, proven. www.TheMoneyForLifeBook.com The other focuses on getting and his follies. No link required.
___________________________________
Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Who’s helping you, Whole Life Insurance, why buy whole life insurance, why whole life insurance
March 3, 2008 at 8:32 pm |
[...] Free Life Insurance Leads wrote an interesting post today onHere’s a quick excerpt “If you would be wealthy, think of saving as well as of getting. The Indies have not made Spain rich, because her outgoes are greater than her incomes.”…”Away, then, with your expesive follies, and you will not have then so much reason to complain of hard times…” Benjamin Franklin in Poor Richard’s Almanac It’s worth noting that Dr. Franklin does not say “think of investing” when he advises you about building wealth. Only saving is “saving”. Investing is a form of “getting.” Today the merchan [...]